1. Suit for declaration to enforce an agreement — Appeal against High Court modification of Trial Court decree. (Para 2 )
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2024 Supreme(SC) 811
SUPREME COURT OF INDIA
J.K. Maheshwari, Rajesh Bindal, JJ.
Shivangi Shanker & Anr. - Appellants
Versus
Reshma estates Pvt. Ltd. – Respondent
Civil Appeal No. 10721 of 2024 (Arising out of S.L.P.(C)No. 24121 of 2023)
Decided On : 17-09-2024
Important Points
The court established that mediation can effectively resolve disputes, and agreements reached through mediation are binding and enforceable in court.
Subject
Civil Law - Civil Law
Headnote
[MEDIATION] - [DISPUTE RESOLUTION] - [The court recognized the effectiveness of mediation in resolving disputes, leading to a settlement agreement between the parties. The court emphasized the importance of amicable resolution and modified the previous judgment in accordance with the terms agreed upon during mediation.]
Fact of the Case:
The appellants filed a suit for declaration to enforce an Agreement dated 25.09.1986, which was initially allowed by the City Civil Court. The respondent appealed to the High Court, which modified the trial court's judgment.
Finding of the Court:
The court acknowledged the mediation process facilitated by Mr. Justice S.J. Vazifdar, resulting in a settlement agreement between the parties, which was accepted and recorded by the court.
Issues: Whether the disputes between the parties could be resolved through mediation and if the settlement reached should be recognized by the court.
Ratio Decidendi: The court held that mediation is a valuable tool for dispute resolution, and when parties reach an agreement through this process, it should be honored and incorporated into the court's final order.
Result: The appeal was disposed of in accordance with the Articles of Agreement executed by the parties, modifying the High Court's judgment as per the settlement terms.
Legal Category Hierarchy
Advocates:
Advocate Appeared:
For the Appellant : Mr. Dharam Sharma, Adv., Mr. Sumeer Sodhi, AOR Mr. Arjun Nanda, Adv.
For the Respondent: Mr. Mayank Pandey, AOR, Mr. Subramaniam S., Adv. Mr. Rhythm Buaria, Adv., Mr. Ashish Kumar Pandey, Adv.
Advocate Appeared:
For the Appellant : Mr. Dharam Sharma, Adv., Mr. Sumeer Sodhi, AOR Mr. Arjun Nanda, Adv.
For the Respondent: Mr. Mayank Pandey, AOR, Mr. Subramaniam S., Adv. Mr. Rhythm Buaria, Adv., Mr. Ashish Kumar Pandey, Adv.
Table of Contents
2. The court observed that the parties consented to mediation and subsequently settled all disputes through a mediator's report and signed Articles of Agreement. (Para 3 , 4 , 5 , 6 )
3. An appeal may be disposed of in terms of a settlement agreement reached between parties through a court-appointed mediator. (Para 7 )
4. Appeal disposed of in terms of the settlement agreement; High Court judgment modified and final decree to be drawn. (Para 7 , 8 )
5. Can a court dispose of an appeal based on a settlement reached through mediation?
Yes, where parties amicably settle disputes through mediation and request a final order in those terms, the court may dispose of the appeal in accordance with the settlement agreement. (Para 7 )
ORDER :
1. Leave granted.
2. The present appeal has been filed by the appellants against the judgment and decree1[Dated 13.09.2024] of the High Court2[High Court of Judicature at Bombay]. A suit3[Suit No.7566 of 2003 (Original Suit No.4091 of 2003)] for declaration was filed by the appellants seeking to enforce an Agreement dated 25.09.1986 which was allowed by the City Civil Court, Greater Bombay vide judgment and decree dated 07.12.2018. Aggrieved against the same the respondent preferred first appeal before the High Court, which was partly allowed and judgment and decree of the Trial Court was modified to some extent.
3. When the matter was listed before this Court on 06.11.2023, on consent by both the parties for reference of disputes for settlement through mediation, a request was made to Mr. Justice S.J. Vazifdar, Former Chief Justice of the High Court of Punjab and Haryana, to mediate between the parties and submit a report. The matter was directed to be listed after two months.
4. A report4[Dated 22.08.2024] of the learned Mediator has been received, in terms of which the disputes between the parties stand settled in terms of Articles of Agreement5[Dated 22.08.2024] signed by both the parties.
5. The report sent by the learned Mediator is taken on record.
6. In terms of Clause 16 of the report of the learned Mediator, the parties have agreed that in terms of Articles of Agreement arrived at between the parties, a request shall be made to this Court for passing final order in terms thereof.
7. As the disputes between the parties have been settled amicably in the process of mediation, on account of efforts made Mr. Justice S.J. Vazifdar, we dispose of the present appeal in terms of the Articles of Agreement executed by the parties on 22.08.2024. The impugned judgment and decree by the High Court shall stand modified in terms of the Articles of Agreement. The parties shall be bound by the conditions laid down therein. Final decree be drawn in terms of settlement arrived between the parties.
8. Accordingly, the Civil Appeal is disposed of.
